If a company manufactures am item for Rs.100.00 than it will sell its customer (i.e. dealer or retailer) at Rs.105 (if the rate of tax is 5%).
And then the dealer or retailer will sale it on suppose 115.5 (i.e. 100+5+5+5.5 cost +profit +taxes).
So the end customer will be paying taxes 2 times.
Is the above mentioned is correct or something is wrong..
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Actual rate to the end customer..
Replies (5)
Correct... Tax on profit margin and tax on tax every time...
So sir what is the benefit of GST to a cpmmon man
The basic aim is sane rate of goods all over the country
its wrong... the dealers at every stage shall get input tax credit of the taxes paid on inputs at every stage. So, the taxes paid on purchases cannot be added and levied on the next customer in the chain.
The government claims the gdp will increase by 2%...this is the reason for its claims
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